Trade Pros: How to Leverage Growing Remodeling Activity

Written by Stephanie CernivecPosted on 08/29/2016

The remodeling market is on a winning streak! For the 17th
consecutive quarter, the growth rate for remodeling activity has risen
nationwide, according to Metrostudy’s Residential Remodeling Index (RRI).
In the last three months, remodeling activity increased almost 5 percent
compared with the same period last year, indicating that the U.S. housing
market has finally bounced back.

“The remodeling
market continues to benefit from job growth, improvements to wages and a hot
housing market,” said Mark Boud, Chief Economist at Metrostudy, in a statement.
“In several housing markets across the country, home prices have now surpassed
the peak levels of last decade. Higher prices are bringing more homes to be
listed on the market, spurring remodeling before and after a sale, but on the
other side, increasing affordability issues are also convincing more people to
stay put and invest in upgrading their current residence.”

Whether people are
buying, selling or staying put, it’s clear that remodeling is taking place. So
what does this mean for trade professionals and showroom dealers? First off, it
means more business. As homeowners work to tackle their remodeling projects,
they’ll need your help. Whether they need materials, installation or both,
trade pros have a big opportunity to earn their business. In doing so, having a
wide variety of options will be vital.

In particular,
offering a range of products for kitchens and bathrooms will be important
because these are the most popular rooms for remodeling. Metrostudy’s Boud
explains that the majority of current remodeling projects are taking place in
these rooms because they offer the greatest return on investment.

When expanding the
range of products you have available in order to meet your customers’ needs,
you should be sure to offer radiant heating solutions. Floor heating
has been shown to add value to a home, which is exactly what your customers are
trying to do.

The bathroom is the
most popular room for in-floor heating, but the kitchen takes the second spot.
Electric floor heating can be installed under tile, stone, hardwood, laminate
and more, so if your customer wants to update the flooring in their home, be
sure to tell them about radiant heating’s value proposition! It adds value to
the home and is inexpensive to operate.
Plus, it’s a practical way to heat a room since it warms the people and objects
in a room instead of just the air.

For those buying a
new home or staying in their existing home, it’s important to note that radiant
heating also adds everyday comfort for your customers. It’s an investment that
they’ll get to feel and appreciate firsthand every day.

Plus, you have the
opportunity to boost your sale with less-expensive add-on items, such as a
towel warmer or mirror defogger.
By offering these radiant heating solutions, you’ll be able to boost your
profits and give your customers the return on investment and daily comfort they
want.

Metrostudy’s RRI expects the remodeling market to continue
to grow at about 5 percent for the rest of 2016 and slow slightly to 4 percent
growth in 2017.

“We are expecting
steady expansion for the remodeling market over the next few years, as the
trend of investing in current homes increases, especially once mortgage rates
lift-off from current lows,” Boud said.

As remodeling activity continues to grow, make sure you’re
leveraging the right products to suit your customers and your bottom line!

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